School of Accounting and Commercial Law – Te Kura Kaute, Ture Tauhokohoko: Centre for Accounting, Governance and Taxation Research

Permanent URI for this collectionhttps://ir.wgtn.ac.nz/handle/123456789/21217

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Open Access
Auditor Independence and NAS: a Comparative Analysis of Selected Current Regulatory Frameworks
(Te Herenga Waka—Victoria University of Wellington, 2005) Islam, Ainul; van Zijl, Tony; Karim, Waresul
There is a widespread public perception that the provision of NAS undermines auditor independence. In order to protect auditor independence, the regulatory frameworks of many countries include regulations and guidelines which auditors are required to observe. This paper provides a comparative analysis of selected regulatory frameworks. Regulatory frameworks, with respect to independence, make distinctions between independence of mind and in appearance. It is clear from the analysis of the frameworks that the provision of NAS can threaten both independence of mind and in appearance. There are some NAS for which no safeguard seem to be adequate and which are therefore subject to prohibition. On the other hand, for some nonaudit services the threats are not so clearcut, and auditors are then required to apply professional judgment so that the seriousness of the threats is balanced against the effectiveness of specified safeguards.
Open Access
Does Regulatory Change Improve Financial Reporting Timeliness? Evidence from Bangladeshi Listed Companies
(Te Herenga Waka—Victoria University of Wellington, 2005) Ahmed, Jamal Uddin; Karim, A K M Waresul
The present study is an attempt to empirically test a research question: whether regulatory change can improve financial reporting timeliness in developing countries. Financial reporting delays in Bangladesh have historically been long. In some cases companies are found to publish results of as many as five financial years at a time. Even in 2003, company audits in many cases can be found to take longer than eighteen months. Long audit delay is one of the main causes behind chronic delay observed in issuing financial statements to shareholders. In a significant move to reduce such delays, the country’s Securities and Exchange Commission (SEC), in the year 2000, imposed a mandatory maximum of 120 days to complete audits of listed companies. This provides an interesting setting to examine the research question set out at the beginning. The paper reports the results of multiple linear regressions to test the possible association between financial reporting timeliness and regulatory change while controlling for relevant corporate and auditor attributes. Two levels of analyses were carried out. First, using observations from 1999 and 2001, and then using the observations from 1999 and 2003. The results show that audit delays could be reduced by effective regulatory change. Subsidiaries of MNCs demonstrate significantly shorter delay while companies who do not pay dividends show significantly longer delays. Company size, audit complexity, return on equity, and audit fees (except for one model) do not appear to have any bearing on audit delay.

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